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TurboTax Deluxe

By Robert E. Rihn, C.P.A.

 

TURBOTAX has many features that are similar to those in TaxCut (see last month), so I will review the differences now.TurboTax is a much slicker program than TaxCut. By slicker, I mean it anticipates your moves and presents its features when you need them rather than forcing you to hunt and peck randomly for deductions.

Save more $ with TurboTax

Discovering tax deductions in TurboTax is much easier than in TaxCut. That's because TurboTax presents you with possible deductions just by clicking a field. Where TaxCut gives you an underlying notepad for entering your details, TurboTax has a worksheet that lists examples of deductions. Did you know that there is a deduction for medical mileage? Do you know what the rate is? In TaxCut you would have to read the help screens, rely on a friend to tell you, or read an IRS form. Therefore, you would have a hard time learning any new deductions with TaxCut.

TurboTax is your friend

TurboTax take the place of your friend. For example, TaxCut's medical expenses screen shows such items as Drug, Doctor, Dentist, and Hospital. TurboTax's worksheet lists 15 examples of deductions, asks for your miles driven for medical purposes, and computes your mileage deduction. TurboTax does use notepads when it does not use the worksheet. These worksheets are all over the place. Schedule A has six worksheets and schedule C has eight. Which program do you think is going to save you money?

TaxCut's help screens are comprehensive and easy to access, but as you can see you must look for help. The F1 key and a Find icon are not good enough for a tax program. That kind of interface is not going to save you taxes since it is not probing you with new ideas. With TaxCut you must know what you are looking for, then drill down through lists of topics and subtopics.

Filing electronically is free

The cost of filing TurboTax electronically is free, and I will assume it is as reliable as TaxCut. Always file electronically.

There is no shoebox feature in TurboTax, nor is there anything like TaxCut's Review of Last Year's Report. This report displays last year's entries while you enter this year's. Like TaxCut, TurboTax uses tabs, an extensive interview, processes all state returns, contains official IRS publications, a 1998 tax planner, a what if worksheet, and gobs of help.

When you click the Review tab, you are presented with three Helps before the actual review. Here you can click the Product Update icon and automatically log on to TurboTax's site. TaxCut has no such built-in Internet access, though it does have a site. By the way, www.quicken.com is the best source of financial help on the Internet. Check it out!

It's superior to TaxCut

One of the major advantages of TaxCut use to be its auditor, but this year I could not detect any major differences between the two programs. TurboTax's multimedia is far superior to TaxCut's. And TurboTax is a 32-bit program while TaxCut is 16 bit. Even then, the Home and End keys in TaxCut do not work properly.

Remember having many IRS forms and publications on your desk while preparing your tax return? With TurboTax there is less of that. On the schedule C, click the business code field to display the codes. TaxCut does not have that nor does it have many other features. TurboTax is definitely more robust and easier to use than TaxCut.

In previous years it did not matter which of these two tax programs you used. But for 1997, if you do not know all the deductions you are entitled to, choose TurboTax. TurboTax does not import TaxCut, however. In fact, TaxCut imports TurboTax but I cannot see a reason to do so.


ROBERT E. RIHN, CPA., 525 Bridgeport Avenue, Suite 205, Shelton, CT 06484-4700, Voice (203) 929-8323, Fax (203) 929-0096 e-mail mtfp72a@prodigy.com


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